Transcript Slide 1

42nd Annual Spring Conference
SD Assoc. of School Business Officials
State Aid & American Recovery and
Reinvestment Act 2009
Presenters:
Deene Dayton, Dept. of Legislative Audit
Bobbi Leiferman & Susan Woodmansey, Dept. of Education
1
STATE AID INFORMATION
2
FY2010 State Aid


Per student allocation for FY2010 is $4,804.60 (+ SSA)
General Fund levies:









Agricultural levy
Non-Ag Z levy
Owner-Occupied
Other Non-Ag
$2.573
$3.573
$4.042
$8.656
Increasing/Decreasing Enrollment funding continues
Special Education Disability Funding Levels – no increase
ARRA funds will annually be excluded from excess general
fund balance calculations
Maximum sparsity payment in FY2010 is $123,750.
TCAP funding discontinued in FY2010.
3
Flexibility for Capital Outlay Fund (SB 91)
SDCL 13-16-6 was amended to add the following:
During the period of time beginning on July 1, 2009, and ending on June 30, 2012,
any school district may make payments from its capital outlay fund for the
purchase of property insurance and casualty insurance, for payments for
energy costs and the cost of utilities, and for motor fuel or for any portion of a
contract providing transportation to students or for any mileage
reimbursements. However, the total amount that a school district expends
from its capital outlay fund for these expenses may not exceed forty-five
percent of the total tax revenues deposited in that fund during the current
school fiscal year, and for any school district with a current tax levy for the
capital outlay fund that is greater than its tax levy for the capital outlay fund in
school fiscal year 2008, the total amount expended from the capital outlay fund
for these expenses may not exceed forty-five percent of the total tax revenues
that would have been deposited in that fund during the current school fiscal
year if the tax levy for the capital outlay fund had not been increased since
2008.
4
Resources for FY2010 Budgeting

FY2010 State Aid (General / SE / Sparsity / Consolidation
Incentive)
http://doe.sd.gov/ofm/stateAid/SchoolBudget/index.asp

History of Levies and PS Allocations
http://doe.sd.gov/stateaid/documents/GFLeviesthru2010.xls

Excess General Fund Balance Information (request for
exemption form, base percentages)
http://doe.sd.gov/ofm/stateAid/EGF/index.asp

American Recovery & Reinvestment Act of 2009
http://doe.sd.gov/stimulus/
5
STATE FISCAL
STABILIZATION FUNDS
American Recovery & Reinvestment Act of 2009
6
District Uses of SFSF Funds
Cautionary Note: All of the uses identified in this Illustration are subject to ARRA and other applicable requirements,
including prohibitions relating to the uses of funds
Basic Rule
A district may use its Education Stabilization funds for any activities authorized
under the ESEA, the IDEA, the AEFLA, or the Perkins Act.
Governor’s Control
A Governor does not have the discretion to direct how an district must use its
Education Stabilization Funds.
Education activities consistent with State and local requirements
A district may use its Education Stabilization allocation for such purposes
because these activities are authorized under Title VIII of the ESEA (Impact
Aid). NOTE: The district must maintain records that track separately the
specific uses of the funds.
Modernization, renovation, and repair of public school facilities
Section 14003(a) of the ARRA expressly authorizes a district to use Education
Stabilization funds for this purpose.
Construction
Construction is allowable as an authorized activity under Title VIII of the ESEA
(Impact Aid).
7
A District may not use Education Stabilization
funds for –







Payment of maintenance costs;
Stadiums or other facilities primarily used for athletic contests or
exhibitions or other events for which admission is charged to the
general public;
Purchase or upgrade of vehicles;
Improvement of stand-alone facilities whose purpose is not the
education of children, including central office administration or
operations or logistical support facilities;
Financial assistance for students to attend private elementary or
secondary schools, unless the funds are used to provide special
education and related services to students with disabilities, as
authorized by the IDEA;
School modernization, renovation, or repair that is inconsistent with
State law; or
Restoring or supplementing a “rainy day” fund.
8
Application to Receive SFSF (posted on website)
Application to Receive ARRA-State Fiscal Stabilization Funds (SFSF)
Name of School District
DUNS #
Name of Authorized Official
_________________________________________
_________________________________________
_________________________________________
The funding received from SFSF are intended to meet the overall goals of the American Recovery and
Reinvestment Act of 2009 (ARRA) Public Law 111-5. ARRA funds are subject to additional and more
rigorous reporting requirements. All revenues and expenditures from these funds need to be tracked
and reported separately on a quarterly basis.
ASSURANCES & CERTIFICATION STATEMENT:
The above named school district assures the South Dakota Department of Education that these funds will be
administered in compliance with all state and federal laws and regulations (including assurances in
section 442 of the General Education Provisions Act, GEPA, 20 U.S.C.1232e) applicable to the use of
these funds. The board of the above named school district has authorized me as its representative to
file this application.
________________________________________
Signature & Title of Authorized Official
________________________
Date
9
Accounting for SFSF
Funds received from ARRA-SFSF may be used for any
approved ESEA activity:




May be receipted and expended from general, capital outlay,
special education, pension or food service funds.
Funding received must be expended in timely manner to avoid
federal cash management concerns.
Quarterly reports must be filed within 10 days of the close of the
quarter.
DOE is planning to release SFSF funds biannually in FY2010.
10
ARRA Revenue Codes
New School District Revenues Codes Effective
FY2009:
Revenue Code
4195
4196
4197
4198
4199
Name
ARRA-Title I Grant to LEA
ARRA - IDEA, Part B, 611
ARRA - IDEA, Part B, 619
Preschool
ARRA - School Lunch Equip
ARRA - State Fiscal Stabilization
Funds
CFDA #
Description
84.389A
Revenue received under the American Recovery and
Reinvestment Act 2009 to provide short term funding (2 to 3
years) for the educational needs of disadvantaged students (Title
I, Part A ESEA of 1965).
84.391A
Revenue received under the American Recovery and
Reinvestment Act 2009 to provide short term funding (2 to 3
years) for special education and related services.
84.392A
Revenue received under the American Recovery and
Reinvestment Act 2009 to provide short term funding (2 to 3
years) for preschool special education and related services.
10.579
Revenue received under the American Recovery and
Reinvestment Act 2009 to obtain or replace equipment for
school food service programs.
84.394
Revenue received under the American Recovery and
Reinvestment Act 2009 to provide relief to state and local
government budgets in order minimize and avoid reductions in
education.
11
Coding/Uses/Expenditures of SFSF




SFSF Revenue code = 4199, may be receipted to “any” K-12
fund.
Use of SFSF funding in FY09 must be for expenditures
incurred AFTER February 17, 2009 (date bill was signed).
Expenditures tracked separately by use of accounting
“operational unit” (3rd or 5th level of Software Unlimited).
Permissible to use GJ entry to record expenditures (FY2009
& FY2010)

GJ entry such as the below for elementary teacher salaries:


CREDIT
DEBIT
10-000-1111-110 (local expenditure)
10-001-1111-110 (SFSF expenditure)
12
Coding/Uses/Expenditures of SFSF




Supplementing your FY09 budget is only needed if SFSF is
expended under a function for which there is no budget
(breakout of expenditures for an existing function does not
require a budget supplement).
DOE planning to release SFSF in FY2010 in two payments
(November and May).
FY2010 SFSF should be included in both the means of
finance and appropriation sides of your district budget.
With biannual revenue payments from DOE the GJ entries
should coincide with payments and quarterly SFSF
expenditure reporting requirements.
13
Impact on FY09 Accounting

State Fiscal Stabilization Funds (SFSF) will be recognized
in the May state aid payment, for more information please
see the below web site:
http://doe.sd.gov/ofm/stateAid/index.asp




SFSF application needs to be completed and submitted by
May 15th, application form is posted to the above website.
Application will cover both FY2009 and FY2010.
Quarterly reports are required to be filed within 10 days of
the end of a quarter – 1st quarterly report deadline (for
FY09 funding) would be due July 10, 2009.
Revenues received in FY09 must be expended in FY09 to
meet federal cash management requirements.
14
IDEA - Transfer of 50% Increase

Federal regulations allow for districts to transfer state and/or local
funds not to exceed 50% of the annual increase in IDEA allocations.






FY09 allocation = $100,000
FY2010 allocation (incl ARRA) = $180,000 (increase of $80,000)
Allowable transfer = $40,000
Currently state statutes are MORE restrictive on the transfer of SE state
& local funds – therefore it is NOT currently permissible.
DOE will propose legislation in 2010 Legislative Session to allow use of
this flexibility. (earliest possible effective date would be end of January,
2010).
If legislation is passed – districts could transfer state and/or local funds
from SE to other district funds based on this allowance in federal
regulations.
15
SD Statute Changes Needed to Purchase
Equipment for SE Program:


IDEA federal regulations allow funds to be expended to purchase
equipment for the SE program.
State statutes are again MORE restrictive than the federal regulations
and therefore until a statute change is effective no SE funds may be
used to purchase SE equipment (even those less than $1,000). See
SDCL 13-37-8.10 and 13-16-6.


13-37-8.10. Payments received by a school district for special education, including
minimum foundation funds, based upon tuition paid for children in need as
provided in chapter 13-37, shall be credited to the special education fund of the
school district.
13-16-6. The capital outlay fund of the school district is a fund provided by law to
meet expenditures which result in the acquisition of or lease of or additions to real
property, plan or equipment…….Any purchase of one thousand dollars or less may
be paid out of the general fund. …..
16
Suggested Expenditures for IDEA ARRA Funds






Professional development for SE teachers
Retain teachers, aides and related service providers
Short-term out-of-district behavioral evaluations
Needed assistive technology based on student IEPs and
follow up training for staff and student
Collaborate with Head Start for placement of children with
special needs
Purchase needed instructional software and/or
instructional materials for children with special needs
17
More ARRA Information


http://www.ed.gov/programs/statestabilization
/legislation.html
http://doe.sd.gov/stimulus/
18
Special Education Maintenance
of Effort (MOE)
19